New Delhi, Aug. 12 -- Canada Pension Plan Investment Board (CPPIB or CPP Investments), one of the biggest foreign institutional investors in the Indian real estate and infrastructure sector, is set to invest up to Rs 3,000 crore (around $314.4 million) in Prestige Group's hospitality arm, Prestige Hospitality Ventures Ltd (PHVL), for an aggregate stake of up to 28 per cent, as per a stock market disclosure.

The transaction is, however, subject to the completion of due diligence, negotiation and execution of definitive agreements, as well as receipt of all necessary regulatory and other approvals.

The investment is proposed to be made in multiple tranches under a binding framework agreement approved by a sub-committee of the company's board on August 10, 2026.

PHVL is currently a wholly owned subsidiary of Prestige Estates Projects, with its shares held by the company and its nominees.

The proposed investment will comprise a combination of primary and secondary investments, with the exact structure to be mutually agreed between the parties under the definitive transaction documents.

The transaction will mark a significant capital commitment by CPP Investments to Prestige's hospitality platform and is expected to provide the business with additional capital as it expands its hospitality portfolio.

The investment would value the 28 per cent stake at an implied equity valuation of approximately Rs 10,714 crore (around $1.1 billion) for PHVL. The final valuation and ownership structure, however, will depend on the terms agreed in the definitive documents and the mix of primary and secondary investments.

CPP Investments has been an active investor in India's real estate sector, including hospitality and commercial real estate. Recently, it struck a deal to invest up to Rs 7,000 crore ($740.5 million at current exchange rates) into Indian data centre operator CtrlS Datacenters Ltd.

For Prestige Group, the proposed transaction is another step towards attracting institutional capital into its hospitality business while retaining a majority stake in PHVL. Mumbai-listed Prestige Group in 2024 had secured Rs 2,001 crore from Abu Dhabi Investment Authority (ADIA) and Kotak AIF for housing projects across four major cities as part of Prestige's expansion strategy.

Published by HT Digital Content Services with permission from VC Circle.